Bitcoin is the crypto currency king and many people trade it, use it, and mine for it on a daily basis. It's becoming so popular that governments are scrambling to try and figure out a way to tax it. Just recently the IRS is asking the federal treasury to come up with a tax plan for this digital currency. The plan is to consider it an asset so that it can be taxed. They want you to pay taxes on digital wages and same small business or self employment taxes will be used.
Should you pay your taxes? The answer im going to give you is yes. You should not try and avoid taxes buy using Bitcoin. I know that not all people are honest and im pretty sure alot of people are avoiding taxes. The IRS will come after you and you will have to pay your taxes one way or another. I am not saying that its impossible to hide money what im saying is i don't recommend it.
Here are the new guidelines set by the IRS for you to follow: